Learn Before
Common-Pool Resource
A common-pool resource is a type of good that is rival or partially rival, meaning its use by one person reduces the benefits available to others. It is characterized by being non-excludable for a specific community of users, who may have a legal right to access it, while outsiders can be prevented from using it.
0
1
Tags
Social Science
Empirical Science
Science
CORE Econ
Economy
Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.4 Strategic interactions and social dilemmas - The Economy 2.0 Microeconomics @ CORE Econ
Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
Related
The Irrigation Game as an Example of a Public Good Game
Excludable Public Good (Club Good)
Definition of an Open-Access Resource
Absence of Free-Rider Problem in Naturally Occurring Public Goods
Pure Public Good
Reductions in Carbon Emissions as a Global Public Good
Distinguishing Public Goods from Positive Externalities
Free Rider
Example of an Environmental Public Good: A Sunset View
Radio Broadcasting as a Public Good
A city builds a new lighthouse on its coast. The light from the lighthouse helps all ships in the area navigate safely, regardless of how many ships are present. The city funded the construction through taxes, and it is impossible to charge individual ships for using the light as they pass. Which aspect of this situation best demonstrates the defining characteristic of a public good?
A key characteristic used to classify economic goods is 'rivalry'—the extent to which one person's use of a good diminishes its availability for others. A good is considered 'non-rival' if one person's consumption does not reduce the amount available for someone else. Which of the following scenarios describes a good that is best characterized as non-rival?
Community Project Funding Dilemma
A good can be classified based on two key characteristics: whether its consumption by one person prevents another from consuming it (rivalry), and whether it is possible to prevent people who have not paid for it from having access to it (excludability). Match each type of good with its correct description based on these characteristics.
The Market Provision of Public Goods
A group of residents in a neighborhood proposes hiring a private security firm to patrol their streets at night. The presence of the patrol would increase safety for all residents, making the entire area safer. The plan is to fund this service through voluntary monthly contributions. Based on the economic characteristics of this service, what is the most likely challenge this plan will face?
A lighthouse on a rocky coastline guides ships safely to a harbor. Its light is visible to any vessel in the area. Considering the economic characteristics of the lighthouse's service, which statement provides the most accurate analysis?
Classifying a Digital Service
Community Park Maintenance
A good is defined by two key characteristics: the degree to which one person's use diminishes its availability for others (rivalry), and the ability to prevent people from using it (excludability). Which of the following scenarios best describes a good that is both non-rival and non-excludable?
A public highway during a severe traffic jam, where each additional car slows down all other cars, still functions as a public good because it is open to everyone.
Evaluating a Policy for Improving Air Quality
A company develops a new, highly effective mosquito repellent formula and sprays it over a large public park. The spray eliminates all mosquitoes in the area for a week, and anyone visiting the park benefits from the mosquito-free environment. The company cannot charge individual park visitors for this benefit. However, the pleasant, mosquito-free air in the park does not extend to the surrounding neighborhoods. Which statement best analyzes this situation in the context of a public good?
A national radio station incurs a total cost of $50,000 to produce and transmit a specific one-hour program. Once the program is broadcast, its signal is available to anyone with a radio receiver in the broadcast area. From an economic perspective, what is the cost of allowing one more person within this area to listen to the program?
Analyze the characteristics of each item listed below and match it to the correct economic classification based on its properties of rivalry (whether one person's use prevents another's) and excludability (whether people can be prevented from using it).
Analysis of National Defense as a Public Good
Voluntary Contribution for a Shared Resource
A software company invests $2 million to develop a new weather-tracking application. Once the development is complete, the application is made available for anyone to download for free. The cost to the company for one additional person to download and use the app is virtually zero. Based on this information, which statement best analyzes the economic nature of this application?
Analysis of a Community Fireworks Display
Analysis of a Digital Service
Common-Pool Resource
Congestible Public Goods
Interpreting Public Goods and Shared Resources Problems as Externalities
Non-Rivalry and the Zero Marginal Cost of Public Goods
Historically Abundant Fish Stocks as a Natural Public Good
Learn After
A coastal town provides open access to a local fishing ground for all its residents. The more fish one resident catches, the fewer fish are available for others. It is difficult and costly to monitor each resident's catch or to prevent any resident from fishing. Based on these characteristics, how is the stock of fish in the fishing ground best described?
Managing a Shared Water Resource
A company operates a robotic olive oil production facility where each system requires exactly one worker and 400 kWh of energy to produce 100 liters of oil per day. The production process is such that total output increases proportionally with the number of complete systems in operation. If the company has 12 workers available and access to 4,000 kWh of energy for the day, what is the maximum amount of olive oil they can produce?
Analyzing a Shared Resource
Evaluating a Policy for a Shared Pasture
A researcher is studying agricultural productivity. Model X illustrates the relationship between the total grain produced and the number of hours a single farmer works per day. Model Y illustrates the relationship between the total grain produced and the number of farmers working on the same plot of land, with each farmer working a fixed 8-hour day. Assuming both models show that output increases at a decreasing rate, what is the most likely underlying reason for this pattern in each model?
Match each economic classification of a good to its defining characteristics. For context, 'rivalrous' means one person's use of the good diminishes another's ability to use it, and 'excludable' means it is possible to prevent people who have not paid for it from having access to it.
A village maintains a shared pasture where any resident can graze their cattle. There is no limit on the number of cattle each resident can graze. Each resident understands that if they add one more cow to the pasture, they personally receive the full benefit from that cow, while the negative impact of the slightly reduced grass available per animal is distributed among all villagers. Given this incentive structure, what is the most likely long-term outcome for the pasture?
A community of farmers relies on a shared, open-access irrigation canal. During the dry season, the amount of water one farmer diverts to their fields directly reduces the amount available for farmers downstream. While it is easy to prevent farmers from outside the community from using the canal, it is practically impossible to stop any community member from taking water. How would an economist classify the water in this irrigation canal?
Evaluating Market Power in 'Free' Digital Markets